Kia Opens Era of 100 Trillion Won in Sales... Record High Sales Volume and Operating Profit

Kia has entered the era of 100 trillion won in sales. On the 24th, Kia announced that it recorded consolidated sales of 107.4488 trillion won and operating profit of 12.6671 trillion won last year. These are the highest results ever. Both figures increased by 7.7% and 9.1% respectively compared to the previous year.

Hyundai Motor Group Yangjae Headquarters Building. Photo by Hyundai Motor Group

The annual global sales volume recorded 3,089,300 units, a 0.1% increase from the same period last year. Sales of eco-friendly vehicles reached 638,000 units, and hybrid vehicles 367,000 units, driving the sales growth. These represent increases of 10.9% and 20% respectively compared to the previous year. The proportion of eco-friendly vehicles rose by 2.3 percentage points to 21.4% compared to the previous year. Operating profit benefited from a gain of approximately 1.465 trillion won in won conversion as the won-dollar exchange rate rose by 4.5% last year.

Kia set its annual sales target for this year at 3,216,000 units, a 4.1% increase from last year. Annual sales are expected to increase by 4.7% to 112.5 trillion won during the same period. Operating profit is projected at 12.4 trillion won, with an annual operating profit margin of 11%.

Kia stated, "Despite external uncertainties, we are confident that we will continue to maintain a double-digit operating profit margin this year by leveraging fundamental competitiveness through product mix and improvement in average selling price (ASP)."

This year, shareholder dividends will be paid at 6,500 won per share annually. This is an increase of 900 won compared to last year (5,600 won). The amount for treasury stock repurchase and cancellation (700 billion won) has been expanded by 200 billion won compared to the previous year.

To enhance shareholder value, treasury stocks purchased will be 100% canceled unconditionally starting this year. Last year, 50% of the annual treasury stock repurchase was canceled in the first quarter, and the remaining 50% was canceled upon achieving financial targets based on cumulative figures in the third quarter.

According to the recently announced value-up program, the total shareholder return rate (TSR, dividends and treasury stock repurchase and cancellation) is expected to reach 33.3% in 2024. This year, TSR is planned to be expanded to 35%.

Meanwhile, Kia’s sales and operating profit for the fourth quarter of last year were 27.1482 trillion won and 2.7164 trillion won respectively. These figures represent increases of 11.6% and 10.2% compared to the same period last year.